News: Soil Sub Technologies advances position in major Pahang township project

Soil Sub Technologies (ASX:SOI) is moving ahead in its transition from a junior to a major Malaysian property developer after its joint venture partner Platinum JV Developments Sdn Bhd was recommended to negotiate with the National Housing Commission of Malaysia for the RM1.8 billion ($622 million) housing project at the Penor site in Pahang State, Malaysia.

Soil Sub has an option to acquire the Principal Developer for a model township covering 500 acres at Penor and comprises a mixed residential/commercial project including 4-5,000 dwellings.

The development proposal also includes housing, infrastructure and excludes public works.

Platinum JV Developments Sdn Bhd was acknowledged on 22 April 2014 as principal developer of the Penor Project by Malaysian Prime Minister Yang Amat Berhormat Dato Sri Haji Mohammad Najib bin Tun Haji Abdul Razak.

Platinum JV Developments is currently negotiating a joint venture agreement with the SPNB which is intended to be implemented at the Penor Project.

Adding to the upside, the company has indicated that subject to reaching agreement with the current land owners, the State of Pahang, construction could extend to the surrounding 1,500 acres at this site (up to 20,000 houses in total at this site).

The Penor Project has a gross value of RM 1.8 billion (approximately $622 million) with the potential to generate significant earnings to Soil Sub Technologies.